Aon attributable net income slips 10% in Q1 2025

GlobalData

Mon, Apr 28, 2025, 2:47 AM 2 min read

Aon has recorded attributable net income of $965m for the first quarter of 2025 (Q1 2025), or $4.43 per diluted share, down 10% from $1.07bn, or $5.35 per diluted share, a year ago.

The insurer achieved total revenue of $4.73bn, a 16% increase from $4.07bn in Q1 2024.

Operating income remained steady at $1.46bn, nearly flat compared with $1.47bn in the prior year.

However, Aon's adjusted operating income increased by 12% to $1.8bn for the quarter ending 31 March 2025.

Total operating expenses rose 25% to $3.27bn from $2.60bn in Q1 2024, primarily due to a 19% increase in compensation and benefits and a significant rise in amortisation of intangible assets.

Aon operates through two primary segments: Risk Capital, comprising commercial risk solutions and reinsurance solutions, and Human Capital, including health solutions and wealth solutions.

The Risk Capital segment reported a revenue increase of 7% to $3.2bn, while the Human Capital segment's revenue grew by 40% to $1.5bn.

Aon president and CEO Greg Case said: "Aon has momentum entering year two of the 3x3 Plan and our continued execution drove another quarter of mid-single-digit Organic revenue growth and strong operating performance.

“We are driving growth by providing actionable insights, powered by Aon Business Services, to our clients in an increasingly complex macro environment. These results reflect robust demand for our Risk Capital and Human Capital solutions. We are reaffirming our 2025 guidance, across all key metrics, reflecting the resilience and strength of our business and financial model."

Aon said that its free cash flow generation has supported targeted “tuck-in” acquisitions and a capital return of $397m to shareholders through dividends and share repurchases.

Additionally, it has declared a 10% increase in its quarterly dividend, continuing a 15-year streak of dividend growth.

For the full year of 2024, Aon's net income attributable to shareholders reached $2.65bn, a 4% increase from 2023.

"Aon attributable net income slips 10% in Q1 2025 " was originally created and published by Life Insurance International, a GlobalData owned brand.

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